South Korea mulls letting banks hold stablecoin reserves

South Korean financial authorities have reported to the National Assembly that they are reviewing a plan to allow banks to manage the reserve assets for won-denominated stablecoins, The Herald Business reported. The Financial Services Commission stated it plans to examine management methods for stablecoin reserves, using the current Virtual Asset User Protection Act as a reference, which requires user deposits to be held or trusted to banks. Consequently, the question of which entities will be responsible for holding and managing these reserve assets has emerged as a key issue in the design of the regulatory framework, alongside regulations on stablecoin issuers and exchange ownership.